Winmark (WINA) Valuation Spotlight: Analyzing Market Expectations After New CMO Appointment

If you have been following Winmark (WINA), you probably noticed the company’s latest leadership update: Lisa Hake is stepping in as Chief Marketing Officer, starting October 1. With more than two decades of experience and leadership roles at brands like Great Clips and Best Buy, Hake’s arrival signals a push to take Winmark’s brand and marketing strategy up a notch. Many investors are now turning their attention to what this newly created role could mean for Winmark’s future growth, especially as the company continues to evolve its model.

Stepping back, Winmark’s stock has gained 34% over the past year, including a strong 34% jump in the past three months, pointing to growing momentum. These moves are not just about the new executive hire; broader trends have also played a part, like steady annual revenue and net income growth of 4% and 6%, respectively. Still, this CMO appointment has caught the market’s attention and adds to the string of positive developments investors have noticed in 2025.

So, with fresh leadership in place and the stock showing clear momentum this year, is Winmark an undervalued growth opportunity, or has the recent excitement already been priced in?

Price-to-Earnings of 43.2x: Is it justified?

Winmark is currently trading at a Price-to-Earnings (P/E) ratio of 43.2, which signals that the stock is considered expensive compared to both sector and peer averages.

The P/E ratio compares a company's share price to its earnings per share, offering investors insight into how much they are paying for each dollar of earnings. A higher P/E can indicate high future growth expectations. However, in the case of specialty retail, it often raises questions about whether such growth is sustainable or warranted.

Currently, Winmark’s P/E substantially exceeds both the U.S. Specialty Retail industry average and its direct peers. This may signal that the market is pricing in optimistic growth projections or placing a premium on Winmark’s strong profitability. It could also suggest the stock is overvalued relative to more moderately priced industry rivals.

Result: Fair Value of $280.82 (OVERVALUED)

See our latest analysis for Winmark.

However, slower-than-expected revenue growth or a pullback in market sentiment could quickly put pressure on Winmark’s premium valuation.

Find out about the key risks to this Winmark narrative.

Another View: Discounted Cash Flow Model

Looking at Winmark through the lens of the SWS DCF model, this approach also points to the shares being overvalued. This method focuses on the company’s future cash generation potential rather than pure market multiples. Does this reinforce the view, or could it miss what the market sees?

Look into how the SWS DCF model arrives at its fair value.

Stay updated when valuation signals shift by adding Winmark to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Winmark Narrative

If this take doesn’t fit your view or you want to dig into the details yourself, you can put together your own narrative in just minutes. Do it your way.

A great starting point for your Winmark research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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